The majority of the time for Zooz I have found the device is not reset, just missing the group 1 lifeline association. The way to tell is if it takes commands but does not report back to the hub at all. If you are using one of my drivers, after doing the firmware update and letting the device restart, pressing "Configure" should restore the association.
Or, use this driver: [RELEASE] Z-Wave Universal Device Scanner and it has a command button to send out the Group 1 association command to link the device back to the hub.
Try this first before factory resetting the device, excluding it, or trying to do the zwave replace.
